Cisco Systems to lay off about 14,000 employees: Report

Cisco is expected to announce the cuts within the next few weeks as the company tries to move from its hardware roots to a software-centric company.Reuters | August 17, 2016, 08:52 IST

Cisco Systems is laying off about 14,000 employees, representing nearly 20% of the network equipment maker's global workforce, technology news site CRN reported, citing sources close to the company.

San Jose, California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company tries to move from its hardware roots to a software-centric organization.

Cisco, which had more than 70,000 employees as of April 30, declined to comment.

Cisco increasingly requires "different skill sets" for the "software-defined future" than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation.

Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers.

The company has already offered many early retirement package plans to Cisco's employees, according to CRN.

Up until Tuesday's close of $31.12 on the Nasdaq, the company's stock had risen about 15 pe rcent this year, compared with a 10.5% increase in the Dow Jones US Technology Hardware & Equipment index.